Council employee arrested over £3m fraud

A council employee has been arrested in connection with a suspected fraud involving £3 million of public money.

The man, an employee of Birmingham City Council, was one of the three men arrested following an investigation by West Midlands police's economic crime team and the council's finance department.

Police said the arrests were made following raids on houses in Redditch, Worcs, last week.

The men, all middle aged, were questioned and bailed to appear at a police station next month.

A council source said the alleged plot came to light after staff queried a large payment that had been made from one of the council's bank accounts.

Further investigation of pending financial transactions then prevented another large chunk of money that was due to be transferred.

Put together, the transactions amounted to more than £3 million.

The council worker, who has been suspended, is not a city councillor.

Paul Dransfield, the council's corporate director of resources, said: "Working swiftly in partnership with West Midlands Police and the systems in place with the banking industry helped foil the attempt and prevent the loss of money belonging to the council.

"The council employee alleged to be involved has been suspended and will be dealt with under the council's disciplinary procedures, alongside any police action."